Stock Analysis

Can You Imagine How Leader Electronics' (TPE:3058) Shareholders Feel About The 33% Share Price Increase?

TWSE:3058
Source: Shutterstock

The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Leader Electronics Inc. (TPE:3058) share price is up 33% in the last year, clearly besting the market return of around 26% (not including dividends). That's a solid performance by our standards! However, the stock hasn't done so well in the longer term, with the stock only up 2.1% in three years.

Check out our latest analysis for Leader Electronics

Leader Electronics isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Leader Electronics saw its revenue shrink by 11%. Despite the lack of revenue growth, the stock has returned a solid 33% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
TSEC:3058 Earnings and Revenue Growth January 7th 2021

Take a more thorough look at Leader Electronics' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Leader Electronics shareholders have received a total shareholder return of 35% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Leader Electronics (including 1 which is potentially serious) .

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on TW exchanges.

If you’re looking to trade Leader Electronics, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


New: AI Stock Screener & Alerts

Our new AI Stock Screener scans the market every day to uncover opportunities.

• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies

Or build your own from over 50 metrics.

Explore Now for Free

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

About TWSE:3058

Leader Electronics

Produces and sells transformers, power converters, and power supply units in Taiwan, Mainland China, the Philippines, the United States, Germany, Malaysia, and internationally.

Flawless balance sheet and good value.

Community Narratives

Leading the Game with Growth, Innovation, and Exceptional Returns
Fair Value SEK 300.00|50.46000000000001% undervalued
Investingwilly
Investingwilly
Community Contributor
Why ASML Dominates the Chip Market
Fair Value €864.91|18.292% undervalued
yiannisz
yiannisz
Community Contributor
Global Payments will reach new heights with a 34% upside potential
Fair Value US$142.00|22.31% undervalued
Maxell
Maxell
Community Contributor